♪ >> appeal rejected. greece's last bid. euro says it would be crazy with the bailout. >> a wild ride. a roller coaster as a first half comes to an end. >> coming on stream, apple music throws down the gauntlet for spotify. up."lcome to "first streaming on mobile and bloomberg.com.

i'm standing in for angie lau. this ticket look at markets in the asia pacific. new zealand dollar spot strengthening about 30%. u.s. stocks halted a winning streak. -- pean equities capped we're also looking at australia, japan, and korea. japan real quick. we are looking at the hong kong survey at the bottom of the hour. mckay futures pointed to a -- nikkei futures point to it slightly lower. a few markets that are closed today in the region, hong kong shut to celebrate its establishment day in its midyear

holiday in thailand. the long-running greek debt drama had a last-minute appeal for help. deal.aid, no imf confirmed it has not been paid. we get the latest on this crisis. refusing to play ball here? >> we are in a default. >> they have been playing hardball for a while here. many leaders are coming in and playing hard ball is out. out of patience and out of time really. recent minting a last-ditch request for a bail out suspension -- extension, but was denied. would merkel said they negotiate on nothing until the july 5 referendum. the greeks had called for an

campaign for. referendum. that see what the outcome is. could backfire. it is an interesting volley, back-and-forth. leaders have characterized this as a decision on the future of greece and the euro. voting happens july 5. commentssome pointed from the eurogroup president about the latest proposal from greece and whether they should be given additional time. let's listen in. >> all of the proposals have been rejected. the greek government has called a referendum and have advice of people to vote no. in those circumstances come it would be crazy to extend the program. i cannot and will not happen.

the program has expired. >> the language they are using shows that they have lost patience for any further negotiating room at least until it's referendum takes place. that would be the critical moment at which greece and its populace determined the future. >> interesting. he is trying to throw in this last-minute bailout added this referendum. what will happen to his job? that is the big referendum. they did in fact miss that imf bill. >> yes. it is being confirmed by the imf in washington. greece failed to make its film and on tuesday in washington miami will consider a greek request for a payment delay in due course. the greeks will ask i met for a delay in that payment.

the board has been informed that -- let's talk about this in a larger context. this is the largest miss payment in the history of the imf. greek uses -- joins them bob zimbabwe. it is not because it today grexit. all three ratings agencies in it is notays necessarily for sovereign bonds. we will see how long there willing to give greece that breathing room, if you will. >> the likes of zimbabwe. not a good place to be in. get more on all the days top stories. bloomberg business brings the best of bloomberg news and new digital comment. , new jersey governor chris

christie announces his presidential campaign. plus, when time stood still. the actress second in a minute today. that is all on bloomberg.com. be sure to check it out. >> closer to home, what a first half it has been in china. then things changed abruptly. investors were sent scrambling for the exit. they posted their best day in six years. david is here to make sense of it all. where do they go from here? >> i don't know. [laughter] i have for five pages of analyst notes. they are all saying different things. policyf this is really makers. let's start with what happened yesterday.

wild swings. between the bottom and the top, 11% swing. you would have to be back in 1992 to have seen something of this magnitude. this is not just some small developing stock market. nothing again small developing stock markets. it is the world's second biggest. the swings create and destroy wealth within a matter of minutes. yesterday's 11% swing was roughly the size of the entire swedish economy. [laughter] $100 billion. this is where the action was in the first half. clear.sensus is fairly we will continue to see a drop when it comes to this. where else could you say it is

down 35%? what is next? a lot of opinions. there is speculation china would step in for the markets. what we're seeing is similar to what we saw in 2007. you would have missed the 3000 point rally to the record high. .hort-term was consistent these wild swings will continue. any small dip in the market will cost investors to liquidate.

you need margin requirement. theeast it extent we saw first half. it is more expensive now to leverage. you would have to have a very andng risk to lever up build very long positions. >> yes, rallying maybe. what is the latest on that? >> nothing new in that. one was zero. 200 this year. if they do start slowing down the approval process, money will flow out of those bonds. >> all right. david inglis, thank you so much. >> the japanese cabinet has latestd shinzo abe's

policy. the prime minister has been trying to rein in the national debt file hoping to stoke inflation. the minister hopes the new policies will reduce a budget surplus by the end of the decade. >> the key drivers of growth should be the private sector and local governments. have the business world and the local economy perform in the coming years will be the most significant factor in our strategy. >> india's biggest carrier, indigo, is going public at a value of $4 million. they plan to raise about half $1 billion from the ipo with about $200 million in the new stock issues. the airline has had a decade of economic growth, it which has increased the number of first-time flyers in india. an order fromwon china for up to 75 jets.

at the end of a three-day visit to france -- airbus is finalizing agreements to open its second facility in a chinese city where jets are set to go for completion. >> casino stocks got a boost in the u.s. over report china is easing restrictions on tourists visiting good travelers on mainland china could stay there for seven days instead of the current five. this could help reverse the decline in the world's largest gambling hub because ahead of data. macau revenue fell in june. >> apple joins the crowded streaming music games today. let's discuss this. stephen is in new york. good to see you. why is apple coming into the

game now? how is it service different than spotify and others? think it is in some ways a very apple move. they have waited to say that there is a market here. they have waited to see how competitors will attack it. they are doing it their own way. spotify is young and cool. pandora is for radio. i think apple wants to be about the cultural of music. playlists from real djs. collaborations of the likes of rolling stone and shazam. they want it to be about coming to learn about music and experience in music in addition to just playing that song you wanted to hear. >> a mission for everyone -- niche for everyone. what are your first impressions? how do you compare it with the competition? to theve listened competition. i have been listening to apple music for the last several hours. it is nice. interface is different. it is a white ground with bright

colors. , it is a lot like the other streaming music apps. they could put things like a blog roll that lets artists share content. they can put new discovery issues. at its core, it is a music app. >> thank you so much for joining us from new york. >> thank you. >> as of tuesday comes an end around the world. 8 a.m. in hong kong. second will a leap be added to clocks to coppin state for the earth's rotation. it happens usually on a weekend. today me be the first time clocks are synchronized during market hours. u.s. markets -- a.m. willat open at 8

adjust their clocks beforehand. interesting to see how things go there. >> coming up, a winning streak. it latched dish effort for greece sales -- a last-ditch effort for greece fails. ♪

>> checking the stories making headlines around the world now. people were killed in a military plane crash in indonesia. the crash happened two minutes after takeoff. passengers and crew were on board. the plane had buildings -- and buildings and cars as it came down. it is not clear if there are any casualties on the ground. annesses suggest there was engine flyer -- fire. >> the u.s. and cuba are ready to end five decades of reopeningnt by

embassies peters sources in washington say the announcement will be made later today by president obama and secretary of state john kerry. it marks a major milestone. significant issues remain. among them are human rights, propertyr american confiscated at their the revolution, and damages to cuba from u.s. embargo. cuba has become the first country to eliminate mother of the child try mission of hiv and syphilis. the color one of the greatest public health achievements possible. it has been working with havana since 2010 to make sure prenatal women with hiv around the world become pregnant and if untreated, they could have a 15-40% chance of passing the virus on to their children. evening. u.s. stocks have gain for nine quarters. that is all over, that winning

streak. a quarter ofaround a percent, but it was not enough. treasuries are heading in the opposite direction. there are concerns over greece. there was a jump for oil. there was a dispute of iran's nuclear program. let's get more on the u.s. markets and bring in brian fargo advantage funds. he joins us from wisconsin. thank you for joining us. andre starting the quarter a depressing note. we're got greece. puerto rico. how are we going to see the rest

of the year here? it has been a rather tumultuous end of the quarter. suddenly things changed for the dramatically. with a of the year and expecting you will see a decent rebound from where we currently are. i think the situation with greece is going to resolve itself with a positive response in the referendum suggesting that the greek people want to stay within the eurozone. it will likely come to some sort of deal to cobble together a package to keep greece afloat for at least another six months or so. i think we will see oil prices stabilized. a should be pretty good for the energy sector. in the u.s., and focused on energy and technology. i'm really excited by investing in emerging asia and in the eurozone. >> talking about eurozone, do you think the feds weighing in what is going on in greece --

some investors are saying they are putting off these rises. >> that's right. it does appear as though if you look at that but future contracts if you take that as an expectation of what the fed might do, i suggest the fed is going to wait and see how things play out. perhaps wait into -- until the before the hike rates are going all the way into january. i still think if you listen to the writer coming out of various fed speakers, they're going to basically file the mantra that we will take it low and slow. they will start at a very low level. they will go slowly and cautiously. it doesn't mean that they will wait until december. they might try to meet expectations that we had going about a week ago, which is for september rate hike. take a little pause. see how things shake out. this does affect how the fed look out things.

i don't think it will change the trajectory of the rate hikes that are coming. .> all right we are seeing more data coming in overnight. consumer confidence looking better than expect it in june. there's also a not to get in on the action and u.s. at eddie's. they're still waiting for the payroll as well. coming up tomorrow instead of friday due to the holiday. what does that mean? >> yes. thatr as what -- when comes out, it will come out a day early because of the fourth of july holiday. is the will probably see unemployment rate at around 5.5%. .ll of that is well and good but the fed really wants to see is for the average earning and weekly earnings to be expanding at a pace that is faster than the rate of inflation.

rating, -- it was barely faster than inflation. the federal like to see that closer to the percent. janet yellen has made it clear there is a very reliable relationship between wage gains and inflation for prices. they don't need to see 3% wage increases before they decide they are going to start hiking rates. they want to look for confirmation that payrolls are continuing to expand at a decent pace and that wages are not contracting. i think that will give them the all clear. >> all right. wrapping it all up for us. barely in the green for u.s. equities this year. brian jacobsen from wells fargo advantage funds. >> coming up next, no need to rush. a nuclear deal with iran appears within reach. the latest on negotiations went "first up" returns.

♪

>> nuclear deal with iran appears to be within reach. talks have extended by another week to reach final agreement. let's bring in lynn. good to see you. what does this mean? are we moving closer to a deal? further away? >> that is a good question.

it is hard to tell. the momentum is building around the deal right now. the u.s. and europe have extended their interim agreement. the russian foreign minister is saying at this point we are dealing with procedural issues and trying to resolve those. the talks are moving in the right direction. obama said to reporters today that he will not agree to a deal if it is in a bad he'll -- that deal. >> what does it mean for the oil market went you ron comes back? -- iran comes back? >> that is a good question. it would allow let oil that has been kept off the global market back into play. oil are the fifth-largest peck producer. it makes them a big player. they are saying they are

planning to double exports. tend to add a bearish signal to the market. the market is facing some harsh indications. you shale is producing the most oil since 1971 -- u.s. shale is sinceing the most oil 1971. >> we'll see how talks end up. >> coming up next, spend, spend, spend. loosening up the purse string when "first up" returns. ♪

>> good morning. it is 7:30 a.m. in hong kong. it is a holiday in hong kong today as we mark the 18th anniversary of its return to china. we are expecting a possibly large pro-democracy rally this afternoon. you are watching "first up." ♪ >> the top stories this hour, the chinese stocks have the best day in six years on tuesday.

analysts are divided where we go from here. speculation is mounting that beijing will act in the coming days to prevent losses from deepening further. >> apple has thrown down the gauntlet with launch of its new subscription music service. it is simply named apple music. nine dollars 99 per month after a three-month trial. .here is a global radio station iphone users it update the software to access the new service. -- greece's last bit was rejected by tonsillar angela merkel. she says there'll be no negation nations -- no negotiations at all. the could determine whether the ecb gets its emergency loans.

citigroup chief economist says an exit on the euro could take years to finalize. take a listen. >> there is a material risk now of a grexit. no procedures are provisions in the treaty for an exit from the euro. leaving the eu? leaving the euro and -- this would take years. >> there pushing for a rejection of more spending cuts. they are confident voters won't side with the government. in deckuld like to stay or. you we are going to

have a victory. >> they are ramping up the rhetoric ahead of this referendum. they are pushing for a yes to rally sentiment. that greeks who have worked so far to turn this a prosperous -- they won't throw everything away. >> greece is being urged to stick with austerity. the imf is giving the opposite advice to australia. you. good morning to say there is no need?

let me set the scene for you. it is sitting at 20%. it is closer to 70%. australia really does have the sorts of problems that the rest of the world might envy. it is from that context the imf mission chief said toward the end of last week that australia does have fiscal space come it would be useful to have a higher public investment. attitude is also backed up by research from the citigroup who said they were allowed to keep increasing it at an average pace. they could get growth back towards that level of around 3%. with australian

treasury yesterday yesterday on the show. politically speaking, it is difficult to follow the imf advice. >> absolutely. you had to remember what this government campaigned on when they got elected. they may just hammer that point. you are very successful. obviously nuance makes for a lousy political slogan. course and reverse the opposition will accuse them all sorts of things and misleading versions. the government has to stick with this plan. this is what he said.

convinced that australia is on the right track. >> thank you. downgradeas avoided a angst to its improving finances. there was a more than 50% chance of a cut. not anymore. a sigh of relief all around here? really. sigh they wanted to stave off a downgrade. they convince them -- great news from malaysia. from negative to stable. fiscal position is getting better. low inflation.

its deficit is expected to narrow even more this year. they have more time to fix the country's troubled finances and rising debt and we talked about this again and again. borrowing amounted more to $11 billion as of march last year. that scandal is not over. it is more naturally in a triple b range. >> hmmm. is the of a concern weakening currency? >> you know what? is a a concern.

that is a level which it was pegged for seven years. we have seen assurances. not a reflection of economic fundamentals. it is a reflection of market sentiment. still, over the past year, several think it put pressure. also come expectations of a federated hike. -- lift just get a list from the position. >> all right. we will see how things go. thank you. as stocks in the u.s. rallied on tuesday. we get details from new york. >> it was a rebound day on wall

street. there are many wall street who called it a relief rally. cannot haveituation that bad of an impact on the u.s.. in terms of the u.s., stocks really moving higher for most of the day. let's take a look. consumer confidence is one of the strongest points out there today. that is continuing to trend. the reading came it 111.6 versus the prior month. prices, that was more of a mixed picture. i am -- home price growth continues.

we have indicators moving in the opposite direction. mean that theuld market is heading in the right direction. it is a very good thing. let's listen. >> there is really not anything interesting going on. san francisco is exciting, but not overall. which is a good clip given that inflation is low. it does not like it was just before the financial crisis. >> event report out shows business activity in the chicago area trending at a slower pace than last month. we saw gains pretty much across the board. apple is up and running with its new music service.

by the end of the session, most to -- thee close nasdaq was up the most by half percent. for the quarter, it was a down quarter. for the first half of the year, it was not a positive picture. this was the worst start to the year. bloomberg news. >> time for a look at the corporate stories making headlines. thanks. in revivalnvestors efforts. the company plans to raise billions of dollars, about 10% of its market value. sony has boosted profits by cutting off concerns about the timing of this timing. >> going public next year. listingl be raising by

that money by listing on the nasdaq. they have many franchised outlets in japan and plans to extend overseas. airbus is being sued by the families of 10 passengers who died when the plane crashed last september. it was "effectively and andasonably dangerous didn't provide accurate information." everyone on board died. air asia is expected to be added to the suit. >> up next, some song wins a big contract in norway. of today'se it one

big movers? find out? ♪

>> a nuclear deal with iran. -- appears to be within reach. talks have been expended by another week. johnsecretary of state kerry and russia's foreign minister sergei labral signaling brovbling -- sergei la signaling -- >> has and has launched an investigation after a man committed suicide on a train leaving himself and a female passenger dead. the man with the 71-year-old from tokyo who set himself on fire in a toilet and a woman died from smoke inhalation.

they haven't had a single death and operations related accidents since starting in 1964. and it will last a little bit longer than usual. they want to compensate for earth's sightly rotation. the last time a second was added goes back to 2012. means --eap second -- innocent about that is in about -- ♪ welcome to the stock exchange. reporters are here to tell us the stocks. the extra second changes things up.

about samsungg heavy industries today. bishops of the past two years have not done so well. the reason for optimism and some initial gains in terms of the futures, that is because it has .eceived contract in norway in oil prices this year, a difficult time for oil producers. .hey will be watching closely perhaps it turns to a positive momentum. >> we will say. david, what has you got? >> a fairly big operation. that is that the stock has done so far. very good news. first quarter profit more than

tripling. there also raising their full first half of the forecast. >> we will see. that is the verdict from the stocking exchange. we will be back in an hour to see how the stocks is -- stocks have done. >> coming up, a service on business confidence. we bring in that breaking news when "first up" returns. ♪

>> we have got breaking news. ette has the details. what are we saying? >> we have seen a big increase in the tankan survey.

very much higher than what we saw in the previous quarter. i want to take you into my bloomberg animal to show you basically what we have seen over the last couple of months or quarters rather here. we are a little bit higher. we are still seeing levels not seen since really about a year ago. confidence is improving the first time in three quarters. a really positive sign. it is starting to put more money back into the japanese economy. try to get these businesses to start putting that cash that they have on hold back into the overall economy. a company's expected to also businessheir plans and spending by 9.3% on the year march 2016. a good recovery coming through in japan.

you would expect this is went be very positive news. they are saying it fall a little. >> let's get immediate reaction. you.morning to looks like it was a big beat. 20 think was driving the growth? -- what do you think was driving the growth? >> good morning. there has been a lot of good news. if higher consumer numbers. if got happier consumers. wage increases. all of the saddle -- subtle datapoint appoint a better japan . this is another reflection of that reality. >> what does it mean for profit growth? >> problems have been running at

record highs. that is why there is cash sitting on the sideline. corporations have been making money. we still need that filtered down process. wages increase. the man on the street makes more money. i believe that there's increasing confidence that is happening. have seen increases in wages. we spent further increases in wages. their engagement of the japanese consumer gets manufactures excited. there is no doubt about it. we are is a time when sighing -- seeing quite a bit of and certainty. we have a china slowdown. jpmorgan has cut its growth forecast in japan last week after that weaker than expended -- expected consumer spending. the economy slows to a whole -- halt. with theo reconcile

annualized you'd be growth rate. that is not an economy coming to a halt. >> seems like things are going in the right direction then. thisdo you think about sales tax? will we see another hike this year? >> this year? no. absolutely not. >> i'm sorry. >> 2017 would probably be the year for the final leg up in the sales tax increase. >> ok. their type of putting in shazam plan in. shinzo abe's will we make it? it seems that the budget deficit has improved. are we still in the red? >> sure. that is a great question.

these are finding the change is perhaps in growth revenue for the government. corporations doing better. people have get to comprehensively throughout what happens if we haven't annualized gdp growth -- gdp well above 2%? there are number ways to attack it. lower spending. make a bigger pie. the japanese seem to be doing a good job of building a bigger pie. ok. inflation has also been a big question for japan as well. kuroda has said there is no need for further monetary stimulus. do these figures support his stance on back? >> sure. yet that gdp better than expected. wage growth.

he has done his job. further changes, structural changes do need to be implemented. we would point to the recent movements in the u.s. has a positive support in that direction. it is not overnight changes. they are structural changes. improvements and corporate governance. it will take place over time. >> all right. we will have to keep things going. thank you for joining us from tokyo. on hong live pictures kong. the chief executive getting ready for this flag raising ceremony this morning. we are marketing the 18th anniversary of hong kong to its return to china. expecting a

pro-democracy rally. some say tens of thousands are expected to rally for free elections today. we will see how things go al: i'm al hunt.

john: i'm john heilemann. with all due respect to chris christie, you're wearing our name out. >> with all due respect. with all due respect. with all due respect. your opinions don't matter a lot. john: that was good. we need and wish list. first, welcome. bachelor number 14. christopher james chris christie went back to his old high school